Commercial Real Estate: What You NEED To Know BEFORE You Invest
July 9, 2016Commercial Real Estate: How To Choose The Right Contractor For Your Fix and Flip
July 11, 2016
There are a lot of different ways to make money in the commercial real estate business. Many often choose to go the fix and flip route; refurbishing old homes and selling them at a higher price can yield a higher profit. However, Airbnb could be the most practical choice when are beginning your career.
If you have not heard of Airbnb, you most likely have been living under a rock for the past couple of years. While most of us can appreciate a nice four-star hotel sometimes you want to have something small and quaint all to yourself. This is where Airbnb comes into the picture. Vacationing like you live there is the mission of the company. Airbnb puts potential clients in contact with homeowners that list their homes for a quick and easy bed and breakfast. Most of the hosts are extremely friendly and are willing to help accommodate their guest in any way
Recently, Airbnb was awarded over $1 billion to help aid in the company’s expansion and debt facilitation. Last year, Airbnb raised over $100 million in revenue. Many people have taken to the enterprise since its inaugural year in 2008. Along with providing people with inexpensive room and board, it also can be used to make a nice profit on a weekly basis. The best part about it is being the hotelier; you can do whatever you want you.
In regard to commercial real estate, depending on where you live, listing your home on Airbnb you have a substantial takeaway at the end of a season. The way it works is Airbnb will cover the cost of insurance and advertisement; at the end, you just have to share a portion of your profit with the company.
What does Airbnb mean for commercial real estate?
Simple. Airbnb means that you can have more than one exit strategy. A lot of people feel as though the only thing they can do once they start investing is fixing and flipping. Now this is a great way to make money. However, recurring payments are much more valuable than a one-time payment. Think of it this way, a home that needs a little TLC, is placed on auction. While it needs a lot of work there is potential. The area you have chosen is ripe for tourism and nightlife. However, you have taken out a loan from a hard money lender. This mean you have a higher interest rate. You could possibly pay the house off quicker if you rent it out every summer or winter.
How to make it work for you on a commercial real estate level
With Airbnb, you can make money to pay off debts you may have and in turn you use the property to make even more money. A lot of the pricing is worked out through the city you have your property listed in. Bigger the city the more tourists want to visit. If you are good at turning around a property quickly you should look into having multiple homes in different places. Having a home near the beach in the summer and having a log cabin near the mountains allow you to have a constant flow of money your commercial real estate investment.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
www.Level4Funding.com
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.
Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.